BENGALURU, Oct. 7 (Reuters) – The retail division of Reliance Industries Ltd (RELI.NS) announced on Thursday that it will be rolling out 7-Eleven Inc convenience stores in India, days after Future Retail Ltd (FRTL .NS) ended a similar agreement with the American channel.
Reliance Retail Ventures Ltd will open on October 9 the first 7-Eleven convenience store in a district of Mumbai, the financial capital of India.
The deal is the latest for the Reliance group, led by billionaire Mukesh Ambani, to rapidly expand its retail and e-commerce business to better compete with Amazon.com (AMZN.O) and Walmart Inc (WMT. N) Flipkart in nearly trillion dollar retail market.
The oil conglomerate’s $ 3.4 billion telecoms deal for Future Group’s retail assets has been blocked following Amazon’s legal challenge. Read more
7-Eleven Inc, based in Irving, Texas, known for its iconic products including the Slurpee, operates and franchises more than 77,000 stores in 18 countries and regions.
Future Retail said on Tuesday it had mutually terminated a deal with 7-Eleven because the companies were unable to meet targets for opening stores and paying franchise fees. Read more
In 2019, Future Retail – India’s second-largest retailer with more than 1,700 stores, including popular Big Bazaar supermarkets and local chains Food Hall and Nilgiris – announced plans to build 7-Eleven stores from scratch. and convert some of its existing stores. operations in the American brand.
The unit formed to run 7-Eleven stores in India had reported a loss of 173 million rupees without opening stores, according to Future Retail’s annual report.
Reliance shares rose 1.22% in morning trading, while Future Retail shares gained 3.7% in a strong market.
Report by Vishwadha Chander in Bengaluru; Editing by Krishna Chandra Eluri and Sriraj Kalluvila
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